3.7.4 Analysing The External Enviroment To Assess Opportuntiies And Threats: Political And Legal Change

Question 1

What is the European single market?

Answer 1

Means there are very few trade barriers between EU member states.

Question 2

3 ways that a business might break competition laws

Answer 2

• conspiring to fix prices.
  -conspiring with competitors to limit production so that higher prices can be charged.
  -if businesses divide up the market to avoid having to compete.

Question 3

3 examples of laws that protect customers

Answer 3

-trade descriptions act- ensures that businesses don’t mislead consumers with false advertisement or false descriptions.
-data protection act- prevents misuse of data.
-consumer protection act - says that new consumer goods must be safe.

Question 4

What are tariffs and quotas

Answer 4

Tariffs discourage international trade.
Quotas are trade restrictions set by government that put limited on imports and exports.